What is AML?
Standing for “Anti-money Laundering”, it is a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases, money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.
Who has to enforce AML?
In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989. In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.
The FATF calls upon all countries to take the necessary steps to bring their national systems for combating money laundering and terrorism financing into compliance with the new FATF Recommendations, and to effectively implement these measures.
Again, as in the case of KYC, financial institutions and/or regulated companies are responsible for the implementation of internal AML policies.
OUR AML Procedures
On top of the KYC procedures detailed above, our AML procedures include the following:
– Identification of all companies, shareholders, directors and other parties with incorporation papers and valid passports to ensure they are who they claim to be and to meet the ultimate beneficial owner burden (UBO) of the parties we transact with
– Inspect proof of address such as utility bills showing operation of the underlying company / business
AML Jurisdiction and Locality
AML regulations are also local and differ from country to country. Some countries choose a top-down approach, inheriting much of their AML policies from the FATF, while others go for a bottom-up approach and then have to reconcile both policies. Extreme countries where such reconciliation is impossible (generally due to Government unwillingness) are excluded from the FATF membership, with the corollary of increased complications to access the international markets and financing. Sky Enterprises adheres to both, KYC and AML guidelines and procedures.